Shopping for a new Credit Card? Here's what you need to look for.

​

From rewards, cash back to bonus points – it isn’t a secret that there are many credit card options to consider. But how do you know which one is right for you?

 

Before you apply and sign your credit card agreement, here’s what you need to know to ensure you are finding the credit card that best fits you and your lifestyle. 

 

Annual Fee

Some credit cards require you to pay an annual fee just for being a cardholder. Many credit card companies waive the annual fee for your first year and then begin charging it your second year of being a cardholder. Make sure to read the fine print to know when the fee will be charged and how much it will be. Typically, annual fees range between $20 - $95.

 

Interest Rate

When you don’t pay your credit card balance in full each month by the due date, interest may accrue on the amount you owe. If you tend to carry a balance on your credit card month to month, you will want the lowest interest rate possible. If you pay your bill in full each month, then the interest rate doesn’t play as big of a role in selecting your card.

 

Some credit cards may feature a low introductory rate that changes after a certain amount of time. Make sure you know when this change takes place and what your rate will change to.

 

Rewards & Cash Back

We all like to be rewarded, even when it is purchasing everyday things like gas and groceries. Based on your spending, look for an incentive program that fits your lifestyle such as cash back or airline miles. Regardless of which rewards program you select, make sure the credit card company doesn’t charge extra for the program. This is typically in the form of an annual fee.  If there is an extra fee for the program, make sure it doesn’t outweigh the rewards you are earning.

 

Whether you are looking for a credit card the offers cash back or has a low-rate, make sure to check with your local financial institution. Many credit unions and local banks offer a variety of credit cards that fit your lifestyle without an annual fee and high interest rate.